Amigo Resources and Tanzania’s State Mining Corporation (STAMICO) have signed a memorandum of understanding (MoU) to assess the feasibility of recovering and beneficiating graphite from mining tailings in Tanzania.
The agreement provides a framework for the companies to undertake technical, commercial and regulatory assessments of graphite-bearing material across several project areas.
Amigo will lead and fund a detailed technical due diligence programme, including sampling, metallurgical testing and independent laboratory analysis to determine whether saleable graphite can be recovered from previously underutilised material.
STAMICO will coordinate with relevant Tanzanian government authorities and local artisanal mining communities, while facilitating access to project sites and available non-confidential information.
The MoU grants Amigo exclusivity in third-party negotiations relating to the project during the agreement period. If the feasibility work produces positive results, the parties may proceed to negotiate definitive agreements for project development.
Although the MoU is non-binding regarding future project development, provisions covering confidentiality, costs, dispute resolution, exclusivity, governing law and the agreement term are legally binding.
Amigo will also retain exclusive ownership of its existing intellectual property and proprietary methodologies used during the assessment.
Amigo executive chair Craig Ransley said the agreement could help determine whether currently unused or waste material can be converted into a valuable graphite product.
He added that the project could potentially support the productive reuse of historical mining residues while creating additional income opportunities for eligible local miners and material owners.
